In a multi stage growth model, the majority of the value can be found in the ______________.
A) near term dividends
B) discount rate
C) dividend growth
D) terminal growth rate
E) None of the options are correct.

Question

Quizplus · Accepted Answer

In a multi-stage growth model, the majority of the value is often found in the terminal growth rate. This is because the terminal value typically captures the bulk of a company's value, assuming it grows at a steady rate into perpetuity after the initial high-growth phase.

In a Multi Stage Growth Model, the Majority of the Value